The Basque Government has successfully closed a new €500 million public debt issuance, framed within the Euskadi Eraldatuz 2030 Plan and with long-term maturity in 2035. The transaction was priced on highly favorable terms, with a spread of 4 basis points over the Spanish sovereign bond, matching the level achieved in the 10-year sustainable issuance in January and improving on the 7 basis points recorded in 2025.
The issuance attracted strong interest from institutional investors, with demand exceeding €2.1 billion, allowing the transaction to be significantly oversubscribed. International participation was once again a key driver, with more than 70% of the bond allocated to foreign investors from Germany, Norway, the Netherlands, Italy, France, the United Kingdom, and the Middle East. On the domestic side, 35% of demand came from investors based in the Basque Country.
The result is particularly notable as it was achieved in a more challenging market environment than earlier in the year, characterized by higher volatility and reduced investor presence. Maintaining such a tight spread reflects market confidence in the strength and credibility of the Basque Country’s economic and financial policy and consolidates its position as a leading issuer in international capital markets.
In this transaction, Kutxabank acted as Global Coordinator. The deal was executed shortly after the international roadshow conducted by the Department of Economy and Finance in Amsterdam and London, where investors were presented with the strength of the Basque economy and the opportunities linked to the Euskadi Eraldatuz 2030 Plan.
Purpose of the Issuance
The issuance forms part of the Basque Government’s 2026 funding strategy, aimed at prudent and efficient public debt management. Through this transaction, the Basque Country meets its annual financing needs, diversifies its funding sources, and reinforces its position as a benchmark issuer in capital markets. The operation also supports the region’s economic and social transformation plans, designed to boost investment and foster industrial, technological, and sustainable development.
About the Issuer
The Basque Country is an autonomous community with its own fiscal framework (the Economic Agreement system) and a highly industrialized economy, with the industrial sector as one of its main economic drivers. The Basque Government, rated A2 / A+ (Moody’s / Fitch), has maintained a consolidated presence in capital markets since 2018, with an issuance program that combines sustainable and conventional benchmarks, supported by a financial management approach based on responsibility, efficiency, and investor confidence.
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